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Rolling Over Your 401(k): IRA Rollovers

Rolling Over Your 401(k): IRA Rollovers

| June 26, 2023

A common question is whether it makes sense to rollover 401(k) accounts upon retirement or changing jobs. While there are many considerations that should be discussed with a Financial Advisor, rolling the funds into an IRA offers several compelling advantages.

One of the primary advantages of an IRA rollover is the expanded range of investment options available. Typically 401(k) plans offer a limited selection of investment choices, primarily consisting of mutual funds or target-date funds. In contrast, IRAs provide a broader universe of investment opportunities, including stocks, bonds, exchange-traded funds (ETFs), real estate investment trusts (REITs), and even alternative assets like precious metals or cryptocurrencies. This increased flexibility allows you to tailor your investment strategy to your specific goals and risk tolerance.

Consolidation and simplification of accounts are another advantage to rolling over a 401k via an IRA rollover. Throughout a career, many individuals accumulate multiple 401(k) accounts from different employers. They may have IRA accounts in multiple locations as well. Managing and tracking these accounts can be cumbersome and time-consuming. By rolling them over into a single IRA, you can consolidate your retirement savings into one easily manageable account. This simplification not only reduces administrative hassle but also provides a clear overview of your retirement portfolio, making it easier to monitor and adjust your investment strategy as needed.

Control over investment decisions and flexibility in choosing an advisor you trust are key components in reaching your financial goals. You can choose a brokerage firm or financial institution that offers the services, tools, and resources that best suit your needs. Moreover, an IRA rollover may allow for greater flexibility in terms of withdrawals.

Have you ever called the 800 or toll-free number for your 401(k) provider and inquired about your investments? Many times, these individuals are not securities licensed and will not provide you with advice. Working with a qualified, licensed professional gives you the advantage of discussing risk tolerance, investment options, specific goals, and personal circumstances.

Cost is always an important factor and will impact long-term rates of return. 401(k) plans may come with various fees, including administrative fees, investment expenses, and account maintenance charges. By rolling your 401(k) into an IRA, you may have the opportunity to access a wider range of low-cost investment options, reducing overall expenses and potentially increasing your investment returns over time. However, it's important to compare and evaluate the fees associated with your current 401(k) plan and potential IRA custodians.

Rolling a 401(k) into an IRA offers a host of advantages that may positively impact your retirement savings and financial future. From expanded investment choices, advice from a licensed advisor, increased control over your portfolio, and simplifying account management, rolling funds over into an IRA is often a good choice for investors. As with any financial decision, it's crucial to assess your individual circumstances, consult with a financial advisor or tax professional, and evaluate the potential benefits and considerations before proceeding with a rollover. Most importantly, take a proactive approach to managing your portfolio. PHP Capital is your local Littleton financial advisory firm, and we are committed to serving our community. If we can be of assistance, please don't hesitate to get in touch! 


William (Bill) Parrish is a financial advisor that owns PHP Capital in Littleton, Colorado. He can be reached at (720) 284-2372 or via email at

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Cambridge and PHP Capital are not affiliated.